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Always look for quality management
Mon, 30 Jul Pre-Open

Imagine yourself in the shoes of the Chief Executive Officer (CEO) of a company whose most of the business operations are in a foreign country which is going through a massive political unrest. The worse, you don't have much clue about the country. And now situation worsened to the point that you need to take a call whether you should shift the business to some other place. You are bound to feel in an utmost indecisive situation as pros and cons of the decision may lead to altogether different ramification, beyond your thinking.

And tell you the truth. This is not an imaginary situation. The CEO of the Aditya Birla Group's carbon black business was in the similar situation last year. This is the kind of crisis hardly any company prepares itself for. It is definitely more than just price war among competitors or big defaults on receivables or strike in the company for a few days. And here comes the value of having strong management in a company.

When the going gets tough, the tough get going. And this seems to be true in every realm of life. If you go through the stories of how many leaders sailed their companies through this crisis situation and came out as winners at the end, your belief on the importance of good management would only increase. We have been voicing the importance of quality management for long time. And once again it has reflected in all the success stories created by many leaders in the time of crisis. Cases such as Aditya Birla Group's carbon black business crisis and Tata Motors' Malaysian joint venture problem are examples, to name a few.

Crisis, big or small, are part and parcel of any company's business operation. All financial and other resources would result in a big naught if the company lacks the right management. After all it is the people who take the decision what to do in a crisis situation and employ the resources accordingly. And lead the company one step forward in its journey.

Investors must keep this aspect in mind before investing in a company from a long term perspective. After all, the company they are investing in would also be facing crisis in its long journey and would require a ality management to keep the company afloat.

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Feb 21, 2018 (Close)